Money Market Account

[runaeb]

We opened a Money Market in January, we took the money from our checking account. I want the amount to still show in our total on reports. Should I put it in a pass thru account or set up a new account?
Thanks, Runae

[NeilZ]

We opened a Money Market in January, we took the money from our checking account. I want the amount to still show in our total on reports. Should I put it in a pass thru account or set up a new account?
Thanks, Runae

A Money Market account is an asset, it would not be a pass through, but a bank account, and as such you want to be able to reconcile it with any deposits/withdrawals or interest income.

[runaeb]

How do I set it up as an asset?

[NeilZ]

How do I set it up as an asset?

Use the Maintain Chart of Accounts to add a new account, then select Detail and Asset from the two lists of choices shown. I'd press the F1 key to bring up the context help as it will describe the process much easier than me trying to do it here.

Once its setup you would then Credit the checking account, and Debit the new Money Market account for the amount you used to open the account.

[runaeb]

Thanks, I did this. Now do I need to set up an income and expense account for the Money Market, so when it draws interest?

[NeilZ]

Thanks, I did this. Now do I need to set up an income and expense account for the Money Market, so when it draws interest?

Why do you need an expense account, when you are only showing income ??? You're not spending money, but you're receiving it.

Create the following INCOME account (numbers are examples): 01-4140 Money Market Interest. When you receive your monthly statement, and before you reconcile, get the amount of the interest and create a transaction in Funds Accounting:

Debit 01-1120-000 Money Market bank account
Credit 01-4140-000 Money Market Interest

Post that in Funds Accounting, then reconcile the Money Market account.

[runaeb]

Thank You